Pay incentives, human capital and firm innovation in smaller firms

Salimi, Meysam; Torre, Edoardo Ezio Della

doi:10.1177/02662426211043237

Cited by 12 publications

(7 citation statements)

References 96 publications

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“…In addition, competitive compensation systems for small businesses may compel reductions in labour unionisation (Salimi and Della Torre, 2022). Conversely, if small businesses are wellstructured, employees may receive bonuses for exceptional performance.…”

Section: Employee Compensationmentioning

confidence: 99%

“…To better understand the perspective of small business owners, industrial relations researchers should consider the origin of the adversarial relationship between small business owners and their employees (Kryscynski et al , 2021). Small business owners often focus on increased productivity and improved product quality for compensation and benefits for their employees (Marlow and Patton, 2002; Marlow and Thompson, 2008; Salimi and Della Torre, 2022). In contrast, small business owners may reduce wages during unfavourable market conditions for their employees.…”

Section: Social Exchange Theorymentioning

confidence: 99%

“…The benefit of employee training directly aligns with a small business owner’s strategic objective for modelling for positively improving industrial relations. The return on investment in employee training eventually leads to higher firm performance with attractive financial incentives (Chowdhury and Schulz, 2022; Kryscynski et al , 2021; Salimi and Della Torre, 2022). However, I advocate that future small business owners focus on formal education and professional development during their formative years (Sampene et al , 2022).…”

Section: Human Resource Management (Hrm) Strategymentioning

confidence: 99%

“…For example, the demand for higher wages from union bosses creates financial constraints for small business owners (Chowdhury and Schulz, 2022). In addition, competitive compensation systems for small businesses may compel reductions in labour unionisation (Salimi and Della Torre, 2022). Conversely, if small businesses are well-structured, employees may receive bonuses for exceptional performance.…”

Section: Labour Unionisation Mitigationmentioning

confidence: 99%

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HRM solutions: a framework for small business owners to manage industrial relations while facilitating labour unionisation mitigation

LeCounte

2023

IJOA

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Purpose Small business owners require objective solutions to deal with threats of labour unionisation. This study aims to centre on a novel exploration for improving the leadership acumen of small business owners to address labour unionisation. Specifically, small business owners need a theoretical framework that uses best practices from human resource management (HRM) and industrial relations to provide solutions. Design/methodology/approach The design, methodology and approach reflect post-modernist epistemological and ontological perspectives for conducting systematic literature reviews. A systematic literature review revealed the relationship between small business owners’ leadership, positive industrial relations and HRM policies and procedures. To identify relevant studies in the review, the utilisation of several databases (EBSCO Database, including PsycINFO and Psych studies; Web of Science) and a mix of ranked journals from entrepreneurship, human resources, leadership and organisational behaviour. Findings The findings and results in this paper reflect the purpose, methodology and literature analysis culminating in 162,132,000 peer-reviewed studies. A total of 142 peer-reviewed studies met criterion for review. For example, the purpose of this review focused on labour unionisation mitigation for small businesses and HRM solutions. In doing so, the methodology allowed for identification of a novel research topic (i.e. how small business owners mitigate labour unionisation) worthy of further investigation. The sparse findings on labour unionisation mitigation represent small business owners' reticence in creating HRM policies and procedures. Originality/value This study contributes research implications for theory and practice by offering small business owners a theoretical framework to address labour unionisation. The framework, centring on HRM solutions, is grounded in social exchange theory to address the novel topic of labour unionisation mitigation in small businesses. This study results suggest that HRM solutions for small business owners provide competitive advantages for employee job satisfaction through a holistic industrial relations approach. In future research, examining other issues discussed in this study can influence the understanding of the relationship between small business owners and industrial relations to increase employee job satisfaction.

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Section: Employee Compensationmentioning

confidence: 99%

Section: Social Exchange Theorymentioning

confidence: 99%

Section: Human Resource Management (Hrm) Strategymentioning

confidence: 99%

Section: Labour Unionisation Mitigationmentioning

confidence: 99%

See 2 more Smart Citations

HRM solutions: a framework for small business owners to manage industrial relations while facilitating labour unionisation mitigation

LeCounte

2023

IJOA

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“…Regarded as the important resources to significantly influence the firms' operation processes, researchers have began incorporating the management of human capital and its impact on innovation (Afcha and Lucena, 2022;Salimi and Della Torre, 2022). However, the previous studies on firm innovation mainly discussed the importance of the stock of human capital, and less discussed how the structure of human capital affects firm innovation (Guo et al, 2022).…”

Section: Talent Policy and Human Capital Structurementioning

confidence: 99%

Can talent policy promote firm innovation: An empirical analysis from solar photovoltaic industry in China

Zhang

Gao

2023

Front. Energy Res.

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Supported by government policies, the innovation of China’s solar photovoltaic industry has been triggered greatly. As an important part of public policy, various talent policies have been issued to increase support for innovation. Therefore, it is essential to study the relationship between talent policy and firm innovation of Chinese solar photovoltaic industry. However, there is less empirical research on this topic. In this context, this study examined whether talent policy influences firm innovation. To examine the underlying causal mechanism, this study explored the role of human capital quality structure and human capital function structure in the relationship between talent policy and firm innovation. Based on the buffering and bridging mechanism of resource dependence theory, an empirical model of talent policy, human capital structure and firm innovation were conceptualized. Using an unbalanced panel data of 101 listed firms of the solar photovoltaic industry in China from 2008 to 2021, the random effect GLS regression was employed to empirically test the impact of talent policy on firm innovation, the mediating effects of human capital quality structure and human capital function structure, and examined the heterogeneous impact of nature of property rights and R&D intensity on the above relationships. The results show that talent policy can significantly promote firm innovation. Human capital structure plays mediating effects on the relationship between talent policy and firm innovation. Moreover, the talent policy and human capital structure’s effects on firm innovation are more significant in non-state-owned firms and firms with low R&D intensity. This study provides an important reference for promoting firm innovation through human capital structure in the construction of the talent policy.

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How do hybrid organisations use socio‐environmental impact information? An exploratory analysis in European B corps

Fuertes‐Fuertes,

Cabedo,

Tirado‐Beltrán

2024

Bus Strat Env

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Achieving genuine sustainability progress depends on translating strategic goals into actionable steps. This is particularly crucial for hybrid organisations, where managers must integrate socio‐environmental impact information into daily practices. This study explores how managers use impact information for internal (company control and decision‐making) and external (dissemination) purposes. Furthermore, it examines whether there are differences in the usage patterns depending on corporate characteristics. Using sample data produced by an online questionnaire administered to European B Corps, the results show somewhat limited integration of this socio‐environmental information into management decision‐making. However, companies with better alignment between economic and social objectives, alongside highly innovative firms, showcase a more extensive use of this information. This research contributes to the literature by identifying specific organisational characteristics that are linked to the observed variations in the use of impact information. It points out which characteristics are associated with companies that exhibit a more comprehensive integration of this information into management practices.

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Pay incentives, human capital and firm innovation in smaller firms

Cited by 12 publications

References 96 publications

HRM solutions: a framework for small business owners to manage industrial relations while facilitating labour unionisation mitigation

HRM solutions: a framework for small business owners to manage industrial relations while facilitating labour unionisation mitigation

Can talent policy promote firm innovation: An empirical analysis from solar photovoltaic industry in China

How do hybrid organisations use socio‐environmental impact information? An exploratory analysis in European B corps

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